Interpretation of the Anti-Money Laundering Law of the People's Republic of China

Author: An Jian, Feng Shuping, Xiang Junbo (editors)
Publisher:
Publish Date: 2007-01-17
Features: The legislative purpose of the Anti-Money Laundering Law is to prevent money laundering activities, maintain financial order, and curb money laundering crimes and related offenses. Therefore, the Anti-Money Laundering Law primarily focuses on preventing money laundering activities, while sanctions and against money laundering crimes are stipulated in the Criminal Law. The term "anti-money laundering" referred to in this Law is limited to the prevention of money laundering activities. The entities responsible for implementing prevention and monitoring measures include not only financial institutions and specific non-financial institutions that are required by regulations to fulfill anti-money laundering obligations but also relevant departments of the State Council. The objects of prevention and monitoring are "money laundering activities," which refer to activities that conceal or disguise the sources and nature of criminal proceeds as defined in Article 2 of this Law through various means. The content of prevention and monitoring encompasses both the customer identification system, customer identification information and transaction record retention system, and large transaction and suspicious transaction reporting system established and implemented by anti-money laundering obligated entities such as financial institutions and specific non-financial institutions in accordance with this Law, as well as supervision, monitoring, investigation, and international cooperation carried out by anti-money laundering administrative departments and other departments legally responsible for anti-money laundering supervision.